Insurance Fraud

Insurance fraud is the willful abuse of an insurance policy for financial gain. Fraud is an intentional act and is illegal. It includes any deliberate deception perpetrated against an insurance company and any deliberate deception committed by an insurance company or its representatives.

The Office of Insurance Fraud investigates all instances of alleged or suspected fraud committed by or upon insurance agents, brokers and companies. The office assists local, state and federal authorities in fraud investigations, as necessary, and cooperates with industry associations and organizations in the investigation and prevention of fraud.

Fraud is the second most costly white-collar crime in America behind tax evasion. According to the FBI, the total cost of insurance fraud (non-health insurance) is estimated to be more than $40 billion per year. That means insurance fraud costs the average U.S. family between $400 and $700 per year in the form of increased premiums.